Unit5 ac465
Read the following fraud case study materials in Chapter 7 of your text:
- “That Way Lies Madness”
- “Hiding Your Dirty Laundry in the Notes”
In your analysis of this case study, address the following:
- Analyze the fraud scheme in terms of the Fraud Triangle, and include an example of incentive/pressure, opportunity, and rationalization from the case that you found in your analysis.
- What were the types of financial statement fraud committed by Crazy Eddie’s retail business?
- What red flags were present indicating that each type of fraud may be occurring?
- Explain how the risk factors you found increase fraud risk. For each fraud risk factor, suggest an internal control that will minimize the risk.
Assignment Submission Requirements
- Viewpoint and purpose should be clearly established and sustained by providing specific examples to support your assertions.
- Use correct grammar, punctuation, and spelling.
- Writing should be well ordered, logical, and unified, as well as original and insightful.
- Explain why the person’s behavior pressured them to commit fraud.
- Where did they find the opportunity to commit fraud?
- How did they justify (rationalize) their behavior in committing the fraud?
